90% Premium Increase?

[spedprof]

Folks,

In need of informed advice. Wife and I have LTC policy with 5% compounding. Daily up to $560 or so. We are 68 and 66 and live in NY. Premium just increased by 90% but we were offered options of reducing to 3.85% compound or 2.7% compound with the latter keeping premium at the current level.

Looking for advice but having a hard time finding any.

Thanks in advance.

 

[Mr_Ed]

Folks,

In need of informed advice. Wife and I have LTC policy with 5% compounding. Daily up to $560 or so. We are 68 and 66 and live in NY. Premium just increased by 90% but we were offered options of reducing to 3.85% compound or 2.7% compound with the latter keeping premium at the current level.

Looking for advice but having a hard time finding any.

Thanks in advance.

Is this a NY State Partnership policy?

 

[ltcadviser]

Premium just increased by 90%

Who is the underwriter that presented you with the nice Hanukkah gift?

 

[Mr_Ed]

Who is the underwriter that presented you with the nice Hanukkah gift?

it's most likely JH

 

[Arthur Rudnick]

originally posted by spedprof

In need of informed advice. Wife and I have LTC policy with 5% compounding. Daily up to $560 or so. We are 68 and 66 and live in NY. Premium just increased by 90% but we were offered options of reducing to 3.85% compound or 2.7% compound with the latter keeping premium at the current level.

With $560/day, even in NY, you're over-insured. I would change to 2.7% and keep your premium at it's present level.

Or, if you have a 30-day elimination period, ask about changing it to 90 days and drop to 3.85% to see where your premium winds up.

 

[Mr_Ed]

originally posted by spedprof



With $560/day, even in NY, you're over-insured. I would change to 2.7% and keep your premium at it's present level.

Or, if you have a 30-day elimination period, ask about changing it to 90 days and drop to 3.85% to see where your premium winds up.

Great advice, Arthur.

I suspect that the two inflation benefit choices are 2.7% or 3.5%.
I believe the 3.5% would enable the policy to remain a NY State Partnership policy.

Lowering the inflation benefit and extending the elimination period to 90 days is great advice.

 

[Arthur Rudnick]

Great advice, Arthur

OMG, I need a drink.......................




I believe the 90% rate increase, with options for 3.85% & 2.7% were only on the CC1 policy series.

It was the Partnership policies from the same carrier that offered the option of only 3.5%.

 

[spedprof]

Jeez, you guys are wonderful... Now that I am home, I can tell you that I was just a bit off... It is a John Hancock Policy, The daily benefit is $512.. It has a 90 day elimination policy and it is NOT a NY Partnership. It is also a 5 yr. plan (no one asked but i assume that plays into your advice).

Options are stay at 5% Compound and pay a 90% increase, Reduce to 3.85% Compound and pay half the increase (I assume that is about 45%) or reduce to 2.7% and keep premium at current level.

Thanks

 

[Mr_Ed]

Jeez, you guys are wonderful... Now that I am home, I can tell you that I was just a bit off... It is a John Hancock Policy, The daily benefit is $512.. It has a 90 day elimination policy and it is NOT a NY Partnership. It is also a 5 yr. plan (no one asked but i assume that plays into your advice).

Options are stay at 5% Compound and pay a 90% increase, Reduce to 3.85% Compound and pay half the increase (I assume that is about 45%) or reduce to 2.7% and keep premium at current level.

Thanks

It's my understanding that with the John Hancock offer, by decreasing your Inflation Benefit you would NOT lose any of the growth you have to date. So, by decreasing to 2.7%, that means that your premium would remain the same and your Daily Benefit would still be $512 this year and next year (and every year thereafter) your Daily Benefit would grow by 2.7%.

This year it would be $512.
Next year it would be $525.
The year after it would be $540.
The year after that it would be $554, etc...

That's what I would do.

 

[Arthur Rudnick]

originally posted by Mr_ED

It's my understanding that with the John Hancock offer, by decreasing your Inflation Benefit you would NOT lose any of the growth you have to date.

Correct Scott...............

So, by decreasing to 2.7%, that means that your premium would remain the same and your Daily Benefit would still be $512 this year and next year (and every year thereafter) your Daily Benefit would grow by 2.7%.

This year it would be $512.
Next year it would be $525.
The year after it would be $540.
The year after that it would be $554, etc...

That's what I would do.

Agree.............